Argentine govt ducks policy questions after new c.bank chief named

BUENOS AIRES Oct 2 (Reuters) - Argentina's Cabinet Chief
Jorge Capitanich on Thursday ducked questions about the
direction of monetary policy after the appointment of a new
central bank governor viewed as sympathetic to the government's
interventionist stance.

Alejandro Vanoli takes over the central bank at a time Latin
America's No. 3 economy is grappling with shrinking foreign
reserves, runaway consumer prices and a tanking currency after
defaulting on its debt again in July.

He has lately defended the ramping up of state controls in
the economy designed to bolster consumer demand and protect
reserves that stand at $27.9 billion, roughly 4 1/2 months'
worth of import cover.

His appointment, which followed the resignation of his
predecessor Juan Carlos Fabrega on Wednesday, has raised
questions over the central bank's independence and the policy
path it will take.

Capitanich was asked twice in his daily press conference
whether the departure of Fabrega, who had pushed for tighter
anti-inflation measures but ran up against the pro-growth
economy ministry, would mark a shift in monetary policy.

"Naturally he must comply with the bank's charter, and that
means pursuing a strategy that conforms with monetary targets
and which also creates an environment that is favourable and
which stimulates economic activity, employment and investments,"
Capitanich said.

Vanoli's nomination was published in the Official Gazette on
Thursday and will now be submitted to Congress, though this is a
formality and does not stand in the way of the former market
regulator taking oath and beginning his duties.

Local market players expect Vanoli to deepen currency and
trade controls to stem the flight of capital that is threatening
already-sapped foreign reserves and has sharply widened the
margin between the official exchange rate and black market rate.
(Reporting by Richard Lough and Jorge Otaola; Editing by Chizu
Nomiyama)